Cardano (ADA) Shows Signs of Rebound at $0.5613

Cardano (ADA) is currently trading at $0.5613, exhibiting a bearish trend but with indications of a potential rebound. The price action suggests that sellers are becoming exhausted, as evidenced by wicks at key levels. ADA is moving within a descending channel, and a bullish breakout could occur if the price manages to flip the $0.55–$0.56 range.

The price has recently touched the lower Bollinger Band and rebounded, a typical reversal zone. On the 1-hour timeframe, there are early signs of a morning star pattern, which, if confirmed, could signal a short-term reversal from the current low. Additionally, a falling wedge pattern, which is generally bullish, is forming on the 15-minute chart. A breakout above $0.5520 could initiate a mini rally, targeting the mid-Bollinger range.

The Bollinger Bands indicate that the price is close to the lower band on the 4-hour timeframe, suggesting a potential reversion to the mean at the EMA 20 level of $0.5832. On the 15-minute chart, the bands are narrowing, hinting at an upcoming expansion in volatility. The MACD on the 4-hour timeframe is bearish, but the histogram shows shrinking red bars, indicating a loss of momentum. On the 1-hour timeframe, a bullish crossover may form within the next candle, and on the 15-minute timeframe, the MACD has already crossed bullishly, with the histogram turning green.

The EMA 20 on the 4-hour timeframe is at $0.5832, serving as short-term resistance and a reversion level. The EMA 50 is around $0.65, acting as major resistance. Currently, the price is below both EMAs, but a bounce could test the EMA 20. The price action shows a major wick at $0.5155, indicating strong buyer interest. Sellers have failed to push the price lower on recent attempts, signaling exhaustion.

Key support levels to watch include $0.5155, which has been tested and held, $0.5000 as psychological support, and $0.4750 as the last structural low if the breakdown continues. Immediate resistance is at $0.5832 (EMA 20), followed by $0.6000 as horizontal and psychological resistance, and $0.6508 (EMA 50) as a strong upper boundary if bulls regain momentum.

Over the next 12 hours, from 4:00 to 16:00 UTC, a short-term rebound is expected. The price may experience a sideways grind or minor dip toward $0.5350 before bouncing. Between 8:00 and 12:00 UTC, a breakout from the falling wedge could test the $0.5650–$0.5830 range. If volume enters, the price could continue to rise, potentially testing $0.6000 by 16:00 UTC. This period is crucial for bulls to reclaim EMA levels and flip the short-term trend structure.